Understanding the Market | Gold stocks lead the decline, spot gold falls below the $3,340 mark, Citigroup believes gold prices may have peaked
Gold stocks fell sharply. As of the time of publication, LINGBAO GOLD dropped 4.59%, trading at HKD 9.36; SD GOLD fell 3.75%, trading at HKD 25.65; CHIFENG GOLD decreased by 2.21%, trading at HKD 24.35; TONGGUAN GOLD declined by 2.37%, trading at HKD 2.06. On the news front, on July 17, the international gold price suddenly plummeted at the opening, with spot gold currently falling below the USD 3,340 mark. Guomao Futures pointed out that Trump announced an agreement with Indonesia, and the U.S. Treasury Secretary indicated that the U.S.-China negotiations were progressing well, which has cooled risk aversion demand. Coupled with the recent continuous rebound of the U.S. dollar index, this has exerted some pressure on precious metal prices. However, due to the uncertainty of tariff policies and the relatively mild rebound of inflation in the U.S., the market still expects the Federal Reserve to cut interest rates in September, thus providing some support for precious metal prices. Citigroup reiterated a more cautious view on gold prices, stating that they may have peaked and still predicting a drop below USD 3,000 next year
According to Zhitong Finance APP, gold stocks are among the biggest losers. As of the time of publication, Lingbao Gold (03330) is down 4.59%, trading at HKD 9.36; Shandong Gold (01787) is down 3.75%, trading at HKD 25.65; Chifeng Gold (06693) is down 2.21%, trading at HKD 24.35; Tongguan Gold (00340) is down 2.37%, trading at HKD 2.06.
In terms of news, on July 17, the international gold price suddenly plummeted, with spot gold currently falling below the USD 3,340 mark. Guomao Futures pointed out that Trump announced an agreement with Indonesia, and the U.S. Treasury Secretary indicated that U.S.-China negotiations are progressing well, which has cooled risk aversion demand. Coupled with the recent continuous rebound of the U.S. dollar index, this has exerted some pressure on precious metal prices. However, due to the uncertainty of tariff policies and the relatively mild rebound of inflation in the U.S., the market still expects the Federal Reserve to cut interest rates in September, providing some support for precious metal prices. Citigroup has reiterated a more cautious view on gold prices, stating that they may have peaked and still predicting a drop below USD 3,000 next year
